It looks like Canadian medical cannabis producer Aphria Inc. intends to expand its Latin American presence by entering into an exclusive supply and distribution agreement with Paraguay-based Insumos Medicos, S.A. Insumos is a pharmaceutical manufacturing, distribution, and import company.
According to its Letter of Intent, Aphria will provide medical cannabis products in Paraguay through Insumos. The proposed agreement states that the Paraguayan company will be the one to undertake the registration of Aphria’s medical marijuana products with the Paraguay Ministry of Public Health Social Welfare. Insumos will also take care of the appropriate licensing for the import of these products.
Upon completion of the proposed deal, Paraguay will become the third country in Latin America in which Aphria distributes its medical cannabis products. The other two countries are Argentina and Colombia.
Aphria stated that entering Paraguay is in line with its continued long-term objective and strategy for global expansion. Aside from North and South America, Aphria also has a presence in Europe, Africa, Oceania, and the Caribbean.
Insumos, meanwhile, has the network, the relationships, and the reach that Aprhia needs in order to deliver its products to patients across the country.
Cannabis is still illegal in Paraguay. However, its congress passed a bill last year creating a state-sponsored system to import cannabis seeds and grow the plant for medical purposes.